7th CPC Profit / Loss in Increment for PB III : Detail Illustration
Confederation released agenda item to discusss in National Anomaly Committee meeting. As per AGENDA 1 – Anomaly in increment rate, confederation mentioned only certain pay level affected for loss in increment.
As per our analysis we have identified more pay level (cell) are also affected for loss, equally some pay levels getting profit as well.
Detail Illustration for Profit / Loss in increment list for all the Pay Levels PB III
7th CPC Profit / Loss in Increment for PB II : Detail Illustration
Confederation released agenda item to discusss in National Anomaly Committee meeting. As per AGENDA 1 – Anomaly in increment rate, confederation mentioned only certain pay level affected for loss in increment.
As per our analysis we have identified more pay level (cell) are also affected for loss, equally some pay levels getting profit as well.
Detail Illustration for Profit / Loss in increment list for all the Pay Levels PB II
7th CPC Profit / Loss in Increment for PB I : Detail Illustration
Confederation released agenda item to discusss in National Anomaly Committee meeting. As per AGENDA 1 – Anomaly in increment rate, confederation mentioned only certain pay level affected for loss in increment.
As per our analysis we have identified more pay level (cell) are also affected for loss, equally some pay levels getting profit as well.
Detail Illustration for Profit / Loss in increment list for all the Pay Levels PB I
Confederation calls entire employees to organize mass protest demonstration on 25th July 2017
PROTEST AGAINST BETRAYAL OF NDA GOVERNMENT
CONFEDERATION OF CENTRAL GOVERNMENT EMPLOYEES AND WORKERS DECIDED TO ORGANISE
MASS PROTEST DEMONSTRATIONS AND BURNING OF HRA ORDERS ON 25TH JULY 2017 AT MAXIMUM CENTRES THROUGH OUT THE COUNTRY
THOSE HANDS WHICH ARE AFRAID OF RAISING AGAINST INJUSTICES
THOSE TONGUES WHICH ARE AFRAID OF VOICING AGAINST INJUSTICES
ARE SYMBOLS OF SLAVERY AND SURRENDER.
Seventh Central pay Commission Report was submitted to Government on 19.11.2015. Most of the recommendations, especially in the case of Minimum wage, fitment formula, Pay scales of most of the cadres, Allowances, Advances, MACP, CCL, etc. are most retrograde. 7th CPC recommendations are the worst recommendations after the 2nd Pay Commission recommendations (1960). The National Joint Council of Action (NJCA) comprising the National Council JCM Staff Side (mainly Railways, Defence and Confederation) gave notice for indefinite strike to Government on 09.06.2016, seeking modifications in the recommendations. Government refused to call the NJCA leaders for a negotiated settlement and unilaterally declared the decisions of the Cabinet on 29.06.2016. NJCA decided to go ahead with the indefinite strike. On 30.06.2016, Group of Cabinet Ministers including Shri Rajnath Singh, Home Minister, Shri Arun Jaitley, Finance Minister and Shri Suresh Prabhu, Railway Minister held discussion with the NJCA leaders. It was assured that Minimum Pay and Fitment formula will be increased and a High Level Committee will be constituted to submit recommendations in this regard to the Government. It was also assured that all other issues arising out of implementation of 7th CPC will be considered favourably. Four months time limit was also fixed for implementation of the assurances. Based on the above assurances the indefinite strike was deferred for four months.
Evenafter four months time limit fixed, no high level committee was constituted and all other issues remained unsettled. Government constituted committees after committee – Implementation Committee, Empowered Committee, Allowance Committee, Pension Option-I Committee, NPS Committee, Anomaly Committee etc. – but till this day no High Level Committee for increasing Minimum Pay and Fitment formula is constituted eventhough a Group of officers headed by Additional Secretary (Expenditure) held two meetings with the staff side without any discussion on Minimum Pay and fitment formula.
Committees were constituted to delay or deny the demands placed by staff side.
1.Allowances Committee delayed its report for about ten months to deny increase in HRA rates and arrears from 01.01.2016.
2.Pension Option-I Committee rejected the one and the only favourable recommendations of the 7th CPC i.e; Option-I parity for pre-2016 pensioners.
3.NPS Committee categorically stated that withdrawal of NPS is not under the purview of the committee.
As the Government was not ready to honour its assurances given to the NJCA leaders, evenafter a lapse of four months, Confederation has requested the dominant organisations in the NJCA to revive the deferred indefinite strike. As there was no concensus in the NJCA regarding revival of indefinite strike or organizing any serious trade union action (for reason best known to all) against the betrayal of the Government, Confederation National Conference decided to organize independent agitation programmes. Accordingly Massive Parliament March with participation of about 15000 employees and pensioners on 15.12.2016, one day nationwide strike of about thirteen (13) lakhs Central Government employees on 16.03.2017, Mass dharna of about 3000 employees and pensioners in front of Finance Ministers office on 23.05.2017, Human Chain of Central Government employees and Pensioners at all major centres on 22.06.2017 were organized by Confederation for settlement of 21 points charter of demands which included the demands of all sections of employees and pensioners including Gramin Dak Sevaks, Casual Contract workers and Autonomous body employees and pensioners.
After more than eleven months from the date notification of Revised (Pay) Rules 2016 (25.07.2016), Union Cabinet approved the revised allowances on 28.06.2017 without any major modifications, including HRA and Transport Allowances applicable to all section of employees. HRA rate was not increased from 24, 16, and 8%. The date of effect was fixed as 01.07.2017 instead of 01.01.2016.
Some of our friends, who are welcoming and supporting the Government’s decision on allowances are arguing that never in the past Revived Pay and Revised Allowances were given from the same date and for HRA etc. retrospective effect was not given. They consciously want to hide the fact that in the past revised allowances including HRA were granted from the month/next month of notification of Revised Pay Rules. Even if that practice is taken as a precedence, this time employees have every right to get Revised Allowance including HRA from 01.07.2016, as Revised (Pay) Rules 2016 was notified on 25.07.2016. Similarly, never in the past HRA rates were reduced by Pay Commissions. Those who support the Government’s decision are deliberately hiding this fact to somehow justify their stand and misguide the employees, because of their guilty conscience.
As the dominant organisations of the NJCA have left from the path of struggle for realization of the 7th CPC related justified demands raised in the July 11th indefinite strike charter, Confederation has decided to carry forward the struggle against the betrayal of the Government and non-implementation of assurances given by the Hon’ble Ministers. We have made it open that we strongly disagree and disown the stand taken by the Secretary, National Council JCM staff side, (Who is also the convenor of NJCA) by welcoming and thanking the Government for the decisions on Allowances including HRA. Confederation represents the sentiments of entire Central Government employees pensioners especially grass root level workers. It cannot be a party to any statement or action which the ordinary workers feel as betrayal of their cause. Confederation shall continue its struggle against the injustices meted out to the Central Government employees and Pensioners (including Autonomous body employees and pensioners, Gramin Dak Sevaks and casual, Contract workers) by the NDA Government.
Descending to the level of submitting to the dictates of the Government, compromising on the basic principles of trade Union, leaving away the path of struggle ignoring the of principles of collective bargaining, getting addicted to the JCM machinery of never ending, no-result-oriented discussions and consultations — is not the tradition of Confederation. Confederation is a different organisation which our critics and enemies cannot understand.
We are fighting against a Government which is aggressively implementing neo-liberal reforms and we know that struggle path is tough and difficult and require sacrifices. Eventhen, we prefer, that path than the path of opportunism, surrender and compromises. Eventhough we have not won our battle in full, we firmly believe that whatever achievements and benefits the NDA Government was compelled to grant (Example – enhancement of Bonus ceiling to 7000, eligibility for gratuity to NPS employees. 5th Pay Commission recommended parity to pre-2016 pensioners (option-3), microscopic modifications in HRA at minimum level and some other allowances including enhancement of Fixed Medical Allowance to Pensioners and retention of some of the allowances recommended for abolition etc.) is only because of the continuous nationwide campaign and struggle conducted by the Confederation and Confederation alone. Those who never participated in any strike or struggle and only enjoyed the fruits of the struggle and sacrifice of others can never understand the importance of struggle or strike. Empty vessels always go on making much noise, but we believe in action.
It is in this background, the National Secretariat of Confederation of Central Government Employees & Workers has decided to intensify our struggle. To express the strong protest, anger and resentment of the employees, against the totally negative and indifferent attitude of NDA Government and also against the betrayal of the Group of Cabinet Ministers of NDA Government, Confederation calls upon the entire employees to organize mass protest demonstration on 25th July 2017 (25.07.2017 Tuesday) at all centres at centralized places and burn the orders on HRA issued by the Government. Wide publicity may be given to the programme through local print and electronic media and also social media.
The next phase of agitational programmes will be decided by the National Secretariat meetings of Confederation scheduled to be held at Bengaluru on 9th August 2017.
All affiliated organisations and C-O-Cs are requested to make the above programme a grant success.
National Anomaly Committee Meeting : Confederation Agenda Items
Ref: Confdn/JCM NC/Anomaly/2016-19
Dated – 03.07.2017
To
Shri Shiv Gopal Mishra
Secretary
National Council, Staff Side (JCM)
13-C, Feroz Shah Road
New Delhi – 110001
Dear Comrade,
Sub :- Agenda items for the meeting of the National Anomaly committee.
Ref:- Ministry of Personnel, PG and Pensions, Department of Personnel & Training OM No. 11/2/2016-JCA dated 09.09.2016 and 29.10.2016.
Please refer to the above mentioned OMs of Department of Personnel & Training.
Three copies (Triplicate) of the proposed agenda items for the meeting of National Anomaly Committee is enclosed herewith. The same may please be included in the items to be Submitted to Deputy Secretary (JCA), Ministry of Personnel, PG and Persons, Department of Personnel & Training, Government of India, North Block, New Delhi – 110001.
Yours fraternally,
(M. Krishnan)
Secretary General
& Member, Standing Committee,
National Council, Staff Side (JCM)
National Anomaly Committee Meeting : Agenda Item 1
ANOMALY IN INCREMENT RATE
As per clause(C) of the terms of reference of the National Anomaly Committee – where the official side and the staff side are of the opinion that any recommendations is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the commission assigning any reason – it constitutes an anomaly.
Regarding annual increment the recommendations of seventh CPC are as follows:
(i) 7th CPC Report – Highlights of Recommendations –
SL – 7 – Annual Increment – The rate of annual increment is being retained at 3 percent.
(ii) 7th CPC Report – Forword
Para 1.19 – The prevailing rate of increment is considered quite satisfactory and has been retained.
“The rate of annual increment is being retained at 3 percent”
Para 5.1.21 – The Vertical range of each level denotes pay progress within that level. That indicates steps of annual financial progression of 3 percentage within each level.
Contrary to the above principle laid down by the 7th CPC, the actual increment rate in the Pay levels of the Pay matrix are less than 3% as illustrated in the Table below: –
ILLUSTRATION-I – LOSS IN INCREMENT
Pay
Level
Sl. No. in
the Pay
Level
(Cell)
Basic Pay in
the Revised
Pay scale
Next above
Basic Pay
after adding
3% increment
Next above
Basic Pay
fixed as per
pay matrix
Amount of
loss to the
employee
Actual
increment
rate %age
1
12
24900
25647
25600
47
2.81
1
26
37600
38728
38700
28
2.92
3
9
27600
28428
28400
28
2.89
3
16
34000
35020
35000
20
2.94
4
11
34300
35329
35300
29
2.91
4
22
47500
48925
48900
25
2.94
5
10
38100
39243
39200
43
2.88
5
20
51100
52633
52600
33
2.93
6
6
41100
42333
42300
33
2.91
6
9
44900
46247
46200
47
2.89
ILLUSTRATION – 2
In Level – 2, Cell – 2, the pay is shown as 20500. After giving one increment of 3% it should be 21115/- but the next cell is only 21000 (Level-2, Cell-3). Next stage should be 21115+633=21748 but the next cell is only 21700 (Level-2 Cell-4).
In Level – 6, Cell 14 should be 50500 + 1515 = 52015 whereas it is given only 52000.
From the above it can be safely concluded that
(i) Recommendation of the Pay Commission regarding increment rate is in contravention of the principle or policy enunciated by the 7th Pay Commission, Hence it constitutes an anomaly.
(ii) In many stages, eventhough the increment is shown as 3%, it is rounded off to the next below amount causing financial loss to the employees.
(iii) In the sixth CPC, while calculating increment, if the last digit is (one) or above, it used to be rounded off to next 10 (Ten). So in this Pay Matrix also if the amount is 10 (Ten) and above, it should be rounded off to the next above 100 (hundred).
(iv) Even if the difference may look small (in percentage) it will also have long term impact on the employees promotion inviting heavy financial loss. The following illustration will reveal it.
Illustration
1
Pay Level
6
2
Cell (Stage) in the Pay Level
8
3
Basic Pay in the Revised Scale
44900
4
Actual Pay after adding 3% annual increment
46247
5
Basic Pay fixed as per the Pay Matrix
46200
6
Loss of amount to the employee in the increment
47
7
Pay on promotion to next Level if fixed as per serial 4 above
49000
8
Pay on promotion to the next level, if fixed as per serial – 5 above
47600
9
Loss per month on promotion
1400
Thus, for a loss of Rs.47/- only in the Annual increment, the employee will suffer a recurring loss of Rs.1400/- per month during his/her promotion to the next level and this loss will have cumulative effect on rest of the period of the service career with financial loss on Dearness Allowance (DA) and further promotions and also Pensionery benefits.
National Anomaly Committee Meeting : Agenda Item 2
DENIAL OF BUNCHING INCREMENT DUE TO ANOMALY IN FIXING THE NEXT STAGE (CELL) IN EACH PAY LEVEL WITH LESS THAN 3% INCREMENT RATE.
(1) As per the Finance Ministry OM dated 07.09.2016, the grant of bunching increment is subject to the condition that the difference between the lower pay and higher pay should be at least 3%. This condition adversely affects many of the employees. Contrary to the claim of the 7th Pay Commission that increment rate of 3% is maintained, in many pay levels, the difference between lower cell and next higher cell is less than 3% showing that increment rate is less than 3%. Due to this inherent anomaly is granting justified (3%) increment the employees should not be made to suffer in the case of bunching. It is not the fault of the employees but due to faulty increment rate fixed by the commission in each pay level. This anomaly is to be set right by withdrawing the 3% condition from the Finance Ministry orders dated 01.09.2016.
(2) The pay as per the 7th CPC of MTS drawing pay of 7210 and 7430 in the pre-revised pay is bunched and fixed at Rs.19700. As per the bunching orders issued by Finance Ministry, the official drawing Rs.7430 in the pre-revised scale will get additional increment and will be fixed at Rs.20300/- with effect from 01.01.2016.
But the MTS officials drawing Rs.7660/- in the pre-revised pay are also getting revised pay fixed at Rs.20300 with effect from 01.01.2016.
It is requested that to remove the anomaly, the MTS officials who are drawing Rs.7660/- in the pre-revised scale may also be made eligible to get additional increment.
National Anomaly Committee Meeting : Agenda Item 3
ANOMALY ARISING OUT OF NON-GRANT OF OPTION FOR PAY FIXATION IN THE REVISED PAY FROM THE DATE OF PROMOTION OR FROM DATE OF NEXT INCREMENT TO THOSE OFFICIALS WHO ARE DUE FOR PROMOTION/UPGRADATION AFTER 25.07.2016, I.E; AFTER THE DATE OF ISSUE OF NOTIFICATION FOR IMPLEMENTATION OF CCS (REVISED PAY) RULES 2016.
As per Rule-5 of CCS (RP) Rules 2016 notified by the Government on 25.07.2016.
(a) A Government servant may elect to continue to draw pay in the existing pay structure until the date on which he earns his next or any subsequent increment in the existing pay structure or until he vacates his post or ceases to draw pay in the existing pay structure.
(b) In cases where a Government Servant has been placed in a higher pay or scale between 1st day of January 2016 and the date of notification of these rules (i.e. between 01.01.2016 and 25.07.2016) on account of promotion or upgradation, the Government Servant may elect to switch over to the revised pay structure from the date of such promotion or upgradation as the case may be.
As per the above rules, in the case of promotion or upgradation of a Government Servant before the date of notification of the CCS (RP) Rules 2016, he should elect to switch over to the new pay structure from the date of promotion or upgradation.
Subsequently a clarification is issued by the Department of Expenditure (Implementation Cell) on 29th September 2016 vide OM No. 1-6/2016-IC (Pt) dated 29.09.2016, which clarified the position as
follows:
“In case an employee is promoted or upgraded to the higher pay structure he may be permitted to exercise revised option to have the pay fixed under CCS (RP) Rules 2016 from the date of such promotion/upgradation or from the date of next increment as per FR 22 (i) (a) (i).
Thus as per Rule-5(b) an official who is promoted on 24.07.2016 (i.e. one day before the date of notification) can exercise option to fix his pay under CCS (RP) Rules 2016 from the date of promotion or from the date of next increment (falling due after 25.07.2016). Whereas, employees whose date of promotion becomes due on 26-07-2016 i.e., after the date of notification cannot elect to continue to draw their pay in the existing (pre-revised) pay structure till the date of his promotion or till the date of next increment. He should compulsorily opt for fixation of pay in the Revised pay structure on01.01.2016 or 01.07.2016 as the case may be. This has resulted in an anomalous situation.
If the option to elect the revised pay structure from the date of promotion falling due on a date after the date of notification of CCS (RP) Rules 2016 (i.e. 25.07.2016) or from the date of subsequent increment after promotion date is not allowed, employees who are due promotion/upgradation after the date of notification will suffer a recurring loss upto Rs.4000/- per month throughout their service and corresponding loss in their pensionery benefits also.
The following illustrations are given where an employee is promoted from grade pay of 2800 to 4200 on 17.05.2017 i.e.; after the date of notification.
Illustration –I
Pre-revised pay as on 01.01.2016 (GP 2800)
16490
Revised pay on 01.01.2016 -16490 X 2.57
42800
Pay on 01.07.2016 (normal increment)
44100
Pay after MACP upgradation on 17.05.2017
(one increment fixation in next pay level)
46200
(Next increment due in 2018 only)
Pay on 01.07.2017
46200
Illustraiton-II (If permitted to opt for fixation of Pay on promotion from the next date of increment after promotion i.e; 01.07.2017 as per FR 22 (i) (a) (i)
Pre-revised pay as on 01.01.2016 (GP 2800)
16490
Pre-revised pay as on 01.07.2016 (one increment)
16990
Pre-revised pay as on 01.07.2017 (one increment)
17500
Pay after MACP promotion in pre-revised scale on 17.05.2017 (difference in GP – 4200-2800 = 1400 Plus one increment)
19430
Revised Pay on 01.07.2017
19430 X 2.57 = 49935 = 50500
50500
Difference in Basic Pay between
Illustration I and II 50500 – 46200 = 4300
4300 (Only in Basic)
In view of the above, it is requested that permission to exercise revised option for fixation of pay under CCS (RP) Rules 2016, from the date of promotion or from the date of next increment falling due after the date of promotion, may be granted to those employees also, whose promotion is due after the date of notification of Revised (RP) Rules 2016.
National Anomaly Committee Meeting : Agenda Item 4
DISADVANTAGE TO EMPLOYEES ON PROMOTION FROM ONE LEVEL TO ANOTHER LEVEL ON IMPLEMENTATION OF CCS (REVISED PAY) RULES 2016.
As per Rule 13 of CCS (Revised Pay) Rules 2016, the fixation of pay in case of promotion from one level to another level in the revised pay structure shall be made in the following manner, viz; – “One increment shall be given in the level from which the employee is promoted and he shall be placed at a cell equal to the figure so arrived at the level of the post to which he is promoted and if no such cell is available in the level to which promoted, he shall be placed at the next higher cell in that level.
Earlier, till 5th CPC (6th CPC grade pay introduced, so this issue will not come), when pay scales were in force in the place of Grade Pay system, pay on promotion from one scale to another scale was fixed by giving one increment in the lower pay scale from which the employee was promoted and he was placed at the next above stage in the higher scale (promoted scale) and if the figure so arrived after giving one increment in the lower scale was equal to the same stage in promoted scale, then he was being placed at immediate next stage in the higher (promoted) scale.
It is clear that earlier rule was not only more beneficial to the employees but also it make their promotion comparatively charming.
After implementation of 6th CPC grade pay system, there was no question of fixation of pay either at equal or at next stage due to grade pay and percentage increment, which was much beneficial to the employees on promotion/upgradation under MACPS from one grade to another grade.
In the existing Pay Matrix the stages are same in most of the level such as Level 2 & 3, 6 & 7, 7 & 8, 6& 8 etc. In this situation, if an employee is promoted/upgraded under MACPS from one level to another level, his pay will be almost same as he may draw even without promotion.
For example – An employee (like senior Accountant) working in Level – 6 (erstwhile grade pay 4200) and drawing pay of Rs.47600/- (cell-II in Level-6) with effect from 01.07.2016 after annual increment, if promoted under MACPs to Level-7 (erstwhile grade pay 4600) or promoted to the post of Asst. Accounts office (AAO) to the Level – 8 (erstwhile grade pay 4800) with effect from 01.04.2017, his pay will be fixed as under, as per Rule – 13 of CCs (RP) Rules 2016 –
1. Basic Pay in the Revised Pay Structure (Level-6) – 47600
2. On upgradation under MACPS to Level – 7 – 49000
3. On Promotion to higher Level (AAO) Level – 8 – 49000
4. On drawing one increment (without any promotion
Or MACPS) in Level – 6 – 49000
It can be seen that there is no improvement on promotion/upgradation, which will adversely affect the morale of the employees leading to increase in number of declination (forgoing) of promotion.
Necessary amendment in the Rule – 13 that ___ “on promotion/upgradation of an employee, if stage/cell on pay fixation is equal in the promoted/upgraded level, he shall be placed at the next higher cell/stage in the promoted scale (Level)” __ may be made.
National Anomaly Committee Meeting : Agenda Item 5
REMOVAL OF ANOMALIES IN PAY MATRIX – PAY OF OFFICIALS DRAWING DIFFERENT GRADE PAY (HIGHER AND LOWER) ARE FIXED AT THE SAME STAGE IN DIFFERENT PAY LEVEL OF 7TH CPC PAY MATRIX
The Pay of officials drawing different grade pay is fixed in the same stage in different pay level of 7th CPC Pay Matrix
Example
Sl.
Pay
Grade Pay
Total
X 2.57
Level
Pay (in the Pay Matrix)
1
22900
5400
28300
72731
9
73400
2
22860
5400
28260
72628
9
73400
3
23660
4600
28260
72628
7
74300
4
23670
4800
28470
73168
8
74300
5
25010
6600
31600
81238
11
83300
6
24000
7600
31600
81212
12
83600
7
26800
4800
31600
81212
8
83600
8
27000
4600
31600
81212
7
83600
9
27400
4200
31600
81212
6
83600
The above table is depicting the pay fixation as per the Pay Matrix. The following anomalies may be noted.
(a) Revised Pay of an employee who has drawn 28300 (SL-I) higher basic pay in the pre-revised scale is fixed at the same stage (74300) than the employees who have drawn lower basic pay in the pre-revised scale (See SL-2, SL-3).
(b) Revised basic pay of an employee who had drawn 28470 (SL-4) higher basic pay in the prerevised scale is fixed at the same stage 74300 than the employees who have drawn basic pay in the pre-revised scale (See SL-I, SL-2, SL-3)
(c) Revised basic pay of an employee whose revised basic comes to Rs.81238 (SL-5) in the revised scale is fixed at a stage (83300) equal to the employees whose revised basic comes to 81212 (See SL 7,8,9)
(d) Revised basic pay of employees drawing grade pay of 4200, 4600, 4800, 7600 (SL-6,7,8,9) are fixed at the same stages from index Serial 9 to 20 (44900 to 62200) of Level – 6 (4200 GP), Stages from Index serial 1 to 12 (44900 to 62200) in Level – 7 (4600 GP) and stages from Index-2 to 10 (49000 to 62200) of Level – 8 (GP – 4800) are one and the same in the feeder cadre and promoted level. As a result officials who are promoted from Level 6 to 7 and from – Level 7 to 8 are the losers as their pay on promotion will be fixed in the cell which would be equal to the amount in the lower level after addition of one increment.
(e) An employees who is drawing more pay in the pre-revised pay is being fixed less in the revised pay E.g: Revised Basic Pay drawing 21320 with GP 5400 will be fixed at 69000 on 01.01.2016 (Level 10) where as basic pay of an employee drawing 21300 with GP 5400 will be fixed at 69200 on 01.01.2016 (Level -9)
(f) Similarly when an employee drawing 4600 grade pay (Level-7) is promoted under MACP to 4800 grade pay (Level – 7) is promoted under MACP to 4800 grade pay (Level – 8) there is no change in his revised basic pay as per pay matrix.
Construction of pay matric is done in such a way that on promotion in most of the cases the fixation falls at the same stage (even though pay level is lower and higher).thus the benefit on promotion works out to be mere one increment i.e. 3%, which the employee can get even without promotion as annual increment. If minimum benefit of two increments is not ensured on promotion, that will act as disincentive to the employees for accepting promotion.